Gerard Corporation adds raw materials to production at the beginning of the process in the Assembly Department.
Question:
Costs | |||
Units | Materials | Conversion | |
Work in process, March 1 | 25,000 | $ 68,750 | $167,650 |
Started during March | 100,000 | 300,000 | 903,350 |
Work in process, March 31 | 10,000 |
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.
11a. Refer to the information above. How many equivalent units for materials would there be for Gerard Corporation in March using the FIFO method? (Ans: 100,000)
11b. Refer to the information above. How many equivalent units for conversion costs would there be for Gerard Corporation in March using the FIFO method? (Ans: 101,500)
11c. Refer to the information above. What is the cost of goods completed and transferred out for Gerard Corp using the Weighted Average method? (Ans: $1,374,250)
11d. Try to prepare complete cost of production reports based on the FIFO and Weighted Average methods using the above information. Note that you should get the answers to questions 11 through 13 if you do the complete cost of production reports.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello